Recent studies based on Life Cycle Assessment (LCA) have highlighted the potential of in-place recycling techniques to enhance the sustainability of agency pavement management decisions for asphalt-surfaced pavements. However, a solution which is found to be environmentally advantageous by an LCA might not be preferred to another one which is technically equivalent if it is not economically competitive. In this context, it is necessary to evaluate the economic advantages taking into account the perspective of the main stakeholders who interact with a pavement system throughout its life cycle. This paper presents a comprehensive pavement life cycle costs (LCC) model that accounts for the different categories of costs incurred by highway agencies and road users over all the pavement life cycle phases. The results of the application of the pavement LCC model to a specific highway rehabilitation project in the state of Virginia showed that in-place recycling practices are beneficial for both highway agencies and road users.